Becker's ASC Review

Becker's ASC Review July August 2015

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Practical Business, Legal and Clinical Guidance for Ambulatory Surgery Centers ASCREVIEW July/August 2015 • Vol. 2015 No. 6 INDEX ASC Tournarounds p. 18 Transactions & Joint Ventures p. 28 Coding & Billing p. 47 Quality & Accreditation p. 50 Tenet Completes USPI Transaction Tenet completed the 50.1% acquisition of USPI, on the path to full ownership in five years. p. 28 10 New Outpatient Centers Ten new outpatient sur- gery centers were opened or announced in the past few months. p. 10 Physician Net Worth 15 statistics on average net worth for four key specialties. p. 12 ASC Legislation Update Where the legislation impacting ASCs most is now, and where it's headed. p. 51 The Financial Pulse of Your ASC: 4 Key Notes on Revenue Cycle By Carrie Pallardy Ambulatory surgery centers are power houses when it comes to clinical quality. From excellent patient outcomes to nearly nonexistent infection rates, ASCs excel, but does the busi- ness office side perform nearly as well? Here are four core thoughts on evaluating and improving ASC revenue cycle management strategies. United Surgical Partners International Senior Vice President of Acquisitions Michael Stroup and Ambulatory Sur- gical Centers of America CEO Luke Lambert discuss the biggest trends in the ambulatory surgery center indus- try over the next five years. 1. Diversified ASCs are attrac- tive. Multispecialty surgery centers can command a higher value because they are able to manage risk better in the volatile healthcare market. If a surgery center is dependent on one specialty, and reimbursement is cut for that specialty, the center is in trouble. "As a buyer, I'm willing to pay more for centers with a safer cash flow," says Mr. Stroup. "A big part of that is diversification." 2. Same-store growth is still lackluster. ASC companies used to have 3 percent to 5 percent or higher same store growth, but that has flat- tened out over the past few years. Now, Mr. Stroup says same store growth is coming back and compa- nies are getting smarter about or- ganic growth. 3. Independent physicians are still available, just harder to find. "A lot of markets have become picked over because there are fewer physicians to recruit," says Mr. Lam- bert. "There are a few markets we've been in for several years where we've been talking to physicians for years and when their hospital contract comes up we try to recruit them. It's been a long-term game." How to Grow Top-Line Revenue in ASCs By Laura Dyrda Ambulatory surgery center owners depend on top- line revenue to keep their businesses profitable. "We know our expenses are increasing," says Reed Martin, COO of Surgical Management Professionals. "We see medical supplies and pharmaceuticals with shortages and upward pressure on costs and prices. Healthcare insurance costs have increased significantly continued on page 15 continued on page 11 continued on page 17 INSIDE: 16 ASCs Adding New Procedures, Becker's 22nd Annual Ambulatory Surgery Center Conference Brochure The Next 5 Years — 11 Key Thoughts & Best Strategies for ASCs By Laura Dyrda Becker's ASC 22nd Annual Meeting - The Business and Operations of ASCs October 22 - 24, 2015 • Swissôtel - Chicago, Illinois 51 Great Surgeons, 55 Leading Administrators and 110 Surgery Center Speakers in Total For more information, visit or call (800) 417-2035. ASCREVIEW

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